Promissory Estoppel - The Legal Chamber

Supreme Court Rules: Govt Can’t Cancel Ongoing Job Recruitments Midway

1Oct

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Supreme Court

Supreme Court Rules: Govt Can’t Cancel Ongoing Job Recruitments Midway

This Supreme Court judgment reiterates that executive instructions, such as a New Recruitment Policy, cannot override or supplant statutory rules or rules framed under Article 309 of the Constitution. A recruitment process, once commenced under specific statutory rules, cannot be altered midway by executive fiat, as doing so amounts to changing the rules of the game after it has begun and violates principles of fairness and legitimate expectation. Facts Of The Case: The State of Tripura initiated a recruitment process for the post of Enrolled Followers in the Tripura State Rifles, conducted strictly under the Tripura State Rifles Act, 1983 and its corresponding Rules. The process, involving advertisements, physical tests, written exams, and interviews, had advanced significantly, with pr...

What Qualifies as ‘Goods’? Supreme Court Explains Why a Power Plant Isn’t Eligible for Export Benefits

The Supreme Court held that a press release announcing a policy change does not constitute a "Change in Law" under a Power Purchase Agreement, as only duly promulgated notifications have legal force. It further ruled that deemed export benefits under the Foreign Trade Policy are inapplicable to immovable, integrated power plants, as the policy is designed for movable "goods" and requires strict adherence to defined supply and procurement conditions. Facts Of The Case: The case involved appeals by Nabha Power Limited and Talwandi Sabo Power Limited against the Punjab State Power Corporation Limited (PSPCL). The dispute arose from a Power Purchase Agreement (PPA) executed following a tariff-based competitive bidding process. The appellants claimed that post-bid notifications from the...

Promises Must Be Kept: Supreme Court Protects Industry from Unexpected Tariff Hikes by State Board

The Supreme Court held that the electricity board was estopped from resiling from its contractual obligation to provide a concessional tariff after having sanctioned, agreed, and partially implemented it. The board's unilateral withdrawal of the concession after over two years was deemed arbitrary, illegal, and unsustainable in law. Facts Of The Case: The appellant, an existing industrial unit with a Low Tension (LT) power connection, underwent significant expansion by installing a large induction furnace, which necessitated a High Tension (HT) or bulk power supply. It applied for this new connection in 1998. The respondent electricity board, after inspection, sanctioned the HT connection via a memo that explicitly stipulated the appellant’s eligibility for a 25% concessional tarif...